Notably, the regulatory approval for substitution of the original awardee in the contract by ATL has already been received from Central Electricity Regulatory Commission. The lenders' consent and other necessary regulatory approvals shall be obtained before the closure of the transaction.
Anil Sardana, MD & CEO, Adani Transmission Ltd, said, “The acquisition of WKTL will bolster ATL’s pan-India presence, consolidating further its position as the largest private-sector transmission company in India. This strategic West to South 765 KV interconnector with Substation in Southern India, completes ATL presence in all regions of the country. This asset will not only increase ATL’s size and scale but will also take ATL closer to its target of setting up 20,000 ckt km of transmission lines by 2022."
Sardana added, "The acquisition is a further demonstration of ATL’s drive towards differentiated capability through inorganic growth, successful integration & making such assets value accretive, for long term sustainable value creation for its stakeholders.”
Warora-Kurnool Transmission will develop, operate and maintain transmission lines aggregating to ~1,750 ckt km. The 765 kV inter-state transmission line links Warora– Warangal and Chilakaluripeta Hyderabad–Kurnool with a 765/400 kV new sub-station at Warangal. The project was awarded through a competitive bidding process on a build, own, operate, maintain basis.
It needs to be noted, the acquisition is in sync with ATL's strategy to enhance the value for its stakeholders, through organic as well as inorganic opportunities.
With this acquisition, the cumulative network of the company will reach ~17,200 ckt km, out of which ~12,350 ckt km is already operational and ~4,850 ckt km (including this asset) is in various stages of execution.
Adani Transmission highlighted that with this enhanced scale of operations, ATL will enjoy substantial benefits in terms of cost optimisation and shared resources and will also fortify its position of being the largest private sector transmission company in the country.
At around 1.02 pm, Adani Transmission was trading at Rs896.60 per piece up by Rs27.60 or 3.18% on Sensex.
The stock has hit a new 52-week high of Rs924.40 per piece on Tuesday.